In this video, GoldSilver founder Mike Maloney expands on his thoughts on Bitcoin and Blockchain technology, previously discussed in more detail in the eighth episode of the Hidden Secrets of Money. Blockchain technology will have a major impact on the way we interact and trade with one another. However, our freedom and privacy are dependent on how this powerful technology is organized and used.
This is not only a possibility, it is highly likely. This is why Mike Maloney sees the creation of Bitcoin and Blockchain technology as a historic moment in time. However, it remains to be seen how this technology will be set up and whether or not society will be better or worse because of it.
This isn't a new topic for us. Mike addressed the idea of Bitcoin as the future of money way back when the price of Bitcoin elapsed the price of one ounce of gold for the first time.
So, we're optimistic about the potential of cryptocurrency. But we're also weary about the potential negative impacts it could have if the blockchain is misused.
If it’s a distributed, full-consensus network blockchain technology, like Bitcoin, there will be millions of computers all over the world double-checking each other. As long as all computers aren’t owned by the same company or entity, this technology could be used for good.
If they digitize the monetary system and use blockchain technology, but there is a single entity running it, such as a central bank or government, this entity could cut you off like a light switch, and all of a sudden you don’t exist. The entity could also see everything you’ve ever bought and anywhere you’ve ever been, so it can be a massive invasion of privacy. It is too much power to give to one entity.
The key factor is making sure that the blockchain technology is running on EVERYBODY’S computer, not just the computers of the government or central banks. There must be an incentive to run it on your computer as well, like Bitcoin Mining, so that power is decentralized and the platform has less potential for abuse of power.
Blockchain is an exciting new technology, but it's not the only solution to the Byzantine general's problem. Bitcoin is a currency built on the Blockchain's full-consensus digital ledger technology, but are there better platforms to build a digital currency on?
Our team is also excited about the potential of Hashgraph, which uses a gossip protocol to come to a consensus using far less energy than Bitcoin and other blockchain-based ledgers.
As we've discussed, cryptocurrencies and full-consensus digital ledgers represent an exciting advancement in technology. However, this technology is still in its infancy. Investing in cryptos can be dangerous, as the markets are highly volatile.
Our view remains that the safest and most reliable investment is in precious metals. Gold and silver have stood the test of time for thousands of years as a reliable store of value over time. No other medium of exchange can say that.